How AI-Powered Conversational Texting Works & Why It’s the Future

Communications have evolved, over the years, from paper-based to digital, and now AI-powered conversations are taking over. Moreover, the adoption of mobile devices has accelerated the use of digital communication tools that use Artificial Intelligence.

Digital communication channels like email, SMS, chat, and others have become preferred channels by consumers to communicate with their friends, family, and businesses. The use of text messages has significantly risen thanks to higher SMS open rates than other channels.

Also, thanks to AI-powered two-way messaging, it is quickly going to disrupt the digital communication landscape. In this blog, we’ll discuss how AI-powered conversational texting works and why it’s the future. So, without further ado, let’s get to know how it works:

How AI-Powered Conversational Texting Works?

AI-based text communications heavily rely on Natural Language Processing & Understanding. It uses machine-learning algorithms to understand the user queries and inputs and respond to them similarly how a human would.

It performs sentiment analysis of the provided query to detect the emotional tone and sentiments such as happiness, frustration, dissatisfaction, etc. to tailor responses accordingly. Moreover, AI-powered conversational texting software excel at maintaining context throughout the conversation and can reference previous messages for natural interaction.

The technology works so seamlessly that you can have a conversation back and forth without any interruptions. It can carry out multiple such conversations simultaneously based on the information and knowledge base it’s provided with.

These knowledge bases and information are unique to the business and help their texting platform learn from each interaction. Also, each conversation helps add new information collected to the knowledge base, and as a result, technology continuously improves.

The biggest advantage of such type of texting is they get to feed on the larger data sets to improve the quality of the response. However, the same is the biggest limitation as access to big data is only possible when the platform has been exposed to enough interactions.

3 Advantages of AI-Powered Conversational Texting

AI-powered conversational texting tools can seem intimidating to some but it surely offers several benefits that make it worthwhile. Here are some of the advantages to keep in mind:

1. Improved Customer Experience

AI-based texting tools like chatbots allow faster support and resolution of queries. Moreover, customers can seamlessly interact with virtual agents and even get personalized support from real agents for more complex problems.

Since they don’t have to wait on hold or navigate complex phone menus to reach customer support, the AI texting tools increase satisfaction levels and improve customer experience.

2. Improved Productivity

AI-powered tools can improve your business's operational efficiency and productivity and reduce your support staff's workload. Since AI texting tools can address basic issues without human input, your team can have more time to focus on solving other complex tasks, which improves productivity and efficiency.

3. Real-Time Assistance

AI-powered tools work 24/7 to provide real-time assistance to your customers. These tools don’t take any coffee breaks and assist customers in the morning, evening, and even in the middle of the night.

Thanks to such flexibility, businesses can save time and money spent on their customer support efforts, and improve overall customer experience. This real-time assistance can further enhance customer satisfaction and build trust in your company.

5 Industries Benefiting from AI-Powered Conversational Texting

AI-powered conversational texting has applications across various industries and here, we are going to discuss a few top ones that are more likely to benefit from it:

1. Service Companies

Service-based companies such as real estate, insurance, and others can automate responses to their incoming inquiries to provide real-time assistance to customers. They can offer self-service options and escalate complex issues to human agents to fast-track deals, and increase sales.

They can also promote a wide range of their services or identify opportunities to upsell/cross-sell their services. Furthermore, AI tools help in saving time and costs, offer better documentation, and scalability for service-based companies.

2. ECommerce & Product-Based Companies

AI-based conversational tools enable eCommerce and product-based companies with personalized interactions. Not only do they help assist in resolving customer queries, but they can also offer product recommendations to enhance the overall shopping experience.

ECommerce and other product-based companies, sometimes, have to ship time-sensitive shipments and ensure they reach the desired destination on time. Through AI texting tools, you can automate and provide support for shipment tracking, enhance customer service, offer personalized recommendations, etc.

3. Banking & Non-Banking Financial Service Companies

According to one research, operational cost savings from AI-based chatbots will reach $7.3 billion by 2023 from $209 million in 2019. Banking and financial service companies want to enhance customer experience, and conversational AI texting tools are one way to meet these demands.

In addition to that, they help you derive insights, optimize your resources, and improve the bottom line. The more interactions these tools have with your clients, the more they’ll know about their likes and dislikes to offer proactive and personalized financial services.

4. Travel and Hospitality

Travel agencies and hospitality companies have small teams, which makes it hard to answer almost all the questions customers may have. They may feel overwhelmed with the number of requests they receive each day/week/month.

AI tools can effectively communicate with clients to provide information about their travel itineraries and hotel bookings on-demand. It’s like an additional member of your staff who works 24/7 without rest and offers support in multiple languages.

5. Healthcare Companies

Healthcare is another industry that needs, or say, deserves the assistance of AI-powered tools. In most cases, healthcare professionals are understaffed or overworked and do not have time for appointment scheduling, or answer basic queries of their clients.

AI texting tools can help people seeking assistance in a positive way to get answers to common questions. They can aid in raising awareness about health-related issues and disperse necessary information to the public.

Why AI-Powered Conversational Texting is the Future?

Text message marketing has been here for a long time now, and as technology advances with more and more AI-powered conversational texting tools coming up, it is poised to go to the next level. These generative content tools help small and medium businesses stay competitive in their industry vertical.

Additionally, they are powerful data analysis tools to analyze large data faster and more accurately than humans. AI and ML algorithms can easily detect patterns in their interactions with customers and help businesses make informed decisions.

This further helps businesses gain a competitive edge that improves their efficiency, boosts the accuracy of sending targeted messages, and increases the conversion rate. Thus, the future of AI-powered conversational texting tools looks promising as they are becoming more sophisticated in understanding and responding to customer needs.


We hope this article has helped you gain a better understanding of how AI-powered conversational texting works, its advantages, and the top industries that can benefit from it. AI-based texting tools provide users with real-time assistance and the best possible experience.

They make it easier for customers to get faster resolution and answer basic questions, which frees up your support staff to address more complex issues. And since they have applications in varied industries, businesses can leverage the power of AI to personalize the user experience with text message marketing. 

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